Kariakoo traders urged to build factories, shift focus to become industrial powerhouse

Dar es Salaam. The Tanzania Investment Centre (TIC) has launched an initiative aimed at transforming local traders at Kariakoo market into industrial investors, not just merchants.

The goal is to turn Kariakoo, Tanzania’s busiest commercial hub, into a breeding ground for industrial billionaires.

“Kariakoo is the engine of Tanzania’s economy,” said TIC Executive Director, Mr Gilead Teri, during a meeting on Friday, May 16, 2025.

“We needed to come here and show these traders how they can benefit from TIC’s services and investment opportunities,” he told The Citizen after the meeting.

Mr Teri pointed out that while foreign investors, including many Chinese nationals, often visit TIC to register businesses and seek investment advice, local traders rarely engage.

“We have more than 120 service providers offering free support at TIC. Yet, every day, we see foreigners lining up, while Tanzanians miss out,” he said.

TIC has identified a significant information gap among local traders, preventing them from accessing government incentives, such as tax exemptions and priority access to infrastructure.

“If Kariakoo traders register as investors with TIC, they can access tax incentives and other government support tailored to help Tanzanians build industries,” added Mr Teri.

In 2024, TIC registered 901 investment projects, 400 of which were in the industrial sector.

Mr Teri urges Kariakoo traders to shift from importing goods to manufacturing them locally.

He highlighted five key sectors that showed strong growth last year and present substantial investment opportunities: building materials, fast-moving consumer goods (FMCGs), food processing, home appliances, and textiles.

“These sectors performed well last year,” he said. “Instead of importing, traders can collaborate and invest in setting up factories to produce these products locally.”

Mr Teri explained that many Tanzanians are accustomed to importing and reselling goods, but this model does not foster sustainable wealth.

“We need to reach a point where we produce our goods and create local jobs,” he added.

TIC aims to register 1,500 investment projects in 2025, with a particular focus on encouraging more Tanzanians to participate.

“So far, 230 local projects have already been registered. We expect that number to grow rapidly,” he said.

The Kariakoo Traders Association Chairman, Mr Severini Mushi, welcomed TIC’s initiative, acknowledging that many traders were unaware of investment opportunities and procedures.

“We’ve only been trading. We didn’t realise we could form groups, invest together, and even start our factories. Today’s session has opened our eyes,” he said.

Mr Mushi also urged TIC to introduce a special registration fee for small local investors, which would differ from the current Sh3 million charge.

Mr Teri responded positively, indicating that TIC is open to discussions if there is genuine interest.

Expert insights on the shift

Economic analyst, Dr Asha Nyang’anyi, believes transforming traders into manufacturers could significantly boost Tanzania’s industrial output.

“Kariakoo traders have the capital, experience, and networks. If they build factories instead of relying on imports, they can create jobs and reduce the trade deficit,” she said.

She added that such a shift would strengthen Tanzania’s tax base, increase exports, and support the country’s long-term economic development goals.

Investment advisor Raymond Mwakalinga noted that Tanzania needs to build its class of industrial billionaires to achieve middle-income status.

“You can’t develop if your wealth is based only on trading imported goods. When traders become producers, they create lasting value and influence,” he said.

Earlier, TIC’s Director of Investor Services, Mr James Maziku, stressed the need for continuous collaboration between TIC and local business communities.

“Many issues can be resolved faster through constant dialogue. This will also make it easier for traders to evolve into full-scale investors,” he said.

Mr Maziku encouraged Kariakoo traders to approach TIC with ideas, assuring them the institution is ready to guide them through the investment process.

Looking ahead

Kariakoo has long been the heart of Tanzania’s commerce, but experts and TIC officials believe its real power lies in its potential to become an industrial hub.

With the right support, education, and partnerships, Kariakoo could soon power Tanzania’s industrial future.

“We want to build billionaires who make things, not just sell them. And we believe Kariakoo is where that transformation can begin,” emphasised Mr Teri.